The last 10 years were by far the safest in Israeli history. Appeasement is more effective than anything else.
Regarding appeasement, tell that to the Brits who might remember Chamberlain.
I don't think Netanyahu's policy over the last 10 years was one of appeasement. It was one of showing a strong capabilities with the willpower to withhold action as long as relative peace is maintained.
Part of that is understanding the psychology of (mostly the young people) on the other side. Making their lives miserable would put them in a state of mind of "nothing to lose".
The problem IMHO is that there wasn't enough emphasis on the psychological warfare (not limited to Gaza, rather the entire aggressive part of the Muslim world. A good psychological/theological campaign that would make them consider that with the violence is a form of blasphemy, might have had positive outcomes.